Major League Baseball (MLB), ESPN is close to deal, involving MLB.TV and five clubs market rights
Major League Baseball and ESPN appear to continue their relationship, but have a new status. Andrew Marchand of Track and Field reported that the league and the network reached a deal that would give ESPN the right to sell all off-market games digitally. These rights have been previously sold to consumers by the Alliance in MLB.TV packages. Under the agreement, ESPN will also gain in-market rights for Rattlesnakes, Guardians, Padres, Rockies and Twins. ESPN will also host exclusive weekly games similar to Sunday night baseball, but on another night of the week. The deal is not yet completed, but can be signed in September. It is not clear how much ESPN has paid for the package, but Marchand said it would be “substantial”.
MLB and ESPN have existing contracts, but are about to expire. The deal previously lasted until 2028, but both sides agreed to opt out after the 2025 season. According to the deal, ESPN is still entitled to a wildcard for Sunday Night Baseball, home run derby and playoffs. These rights are open to 2026 and beyond. Marchand reported a week ago that the rights could be split and sold to multiple companies, with Netflix being a Derby favorite, and NBC/Peacock and Apple TV+ everyone trying to get other components. He responded to the framework in today’s report.
Today’s new developments are potentially seismic. Since 2002, MLB.TV has basically the same format. Baseball fans purchase products through the league and access each MLB game, but with exceptions to local blackouts and other games, guaranteed to be exclusive to some broadcasters. If the deal passes, it is not clear how it will affect existing MLB.TV consumers, but Marchand wrote that they may have to get an ESPN subscription on top of the MLB.TV subscription. It is unclear how this will affect those who purchase MLB.TV via cable or other linear subscriptions.
ESPN recently launched a streaming service that allows anyone to pay $29.99 per month to access the network’s merchandise, whether they subscribe to cable or satellite. The network has been building its own portfolio lately, signing many deals with the NFL and WWE.
Now it seems that they want to add many MLB components to the menu. It is unclear how MLB.TV customers will be financially affected. Marchand reports that basic MLB.TV stickers prices should remain the same and may even fall. Also paying for an ESPN subscription fee will result in customers paying more, although they can also access other ESPN products outside of the baseball world. For some, this new arrangement is naturally a plus sign, but for others, it is a plus sign.
In addition to the MLB.TV program, ESPN appears to be getting local rights to five clubs. Regional motion network (RSN) models have been slowly eroding in recent years due to cable cutting. In recent years, all the five clubs above have seen their local broadcast deals collapse, which has led the league to step in and take over. Fans of these clubs have been able to buy streaming rights directly from the league without power outages. These customers seem to be able to continue in some similar way, although Marchand suggests that they may have to get an ESPN subscription and then pay an additional fee for the specific team they want to visit.
In addition to MLB.TV rights and local indexes for these five clubs, ESPN will also gain some exclusive gaming rights. It seems that despite a different day of the week, it basically works in the same way that baseball does on Sunday night. It seems that details in the field are still being formulated, as it is not clear which day of the week is targeted. Apple already has the right to play every Friday, while Roku has early games every Sunday. Marchand added that the MLB network may also be part of the deal, but that’s more important.
No matter what transaction is signed, it is quite temporary. Various journalists often suggest that the alliance doesn’t want to sign anything more than 2028. They already have a lot of deals expire after that season. It seems like Commissioner Rob Manfred is looking to promote large packages or parcels to multiple broadcasters by the 2029 season. All recent broadcast transactions are relatively short, exceeding 2028. Marchand’s report is also expected to be the same as the ESPN transaction.
These ongoing broadcast chaos could hang in the coming labor conflict. There is a general expectation of a lockdown after the 2026 season. Prolonged shutdowns could lead to cancellations in the 2027 season. Manfred and the owners must recognize playing chicken with the players and how it can affect these broadcast negotiations. Major League Baseball is currently gaining popularity, such as measures such as school enrollment and pitch clocks with improved TV ratings. This momentum will help the league sell future broadcast rights, but the shutdown extending into the summer of 2027 could undermine that.
Photo courtesy of Kirby Lee, Image
